The head of the German federation of industries has claimed the British are “lost” and has thrown doubt on Berlin’s backing for a short Brexit extension, claiming an “economy can live better with bad conditions than with uncertainty”.

Dieter Kempf, the chairman of the Bundesverbandes der Deutschen Industrie, said the 100,000 companies he represents and their 8 million employees have prepared for a no-deal scenario in March, not in May.

Speaking in the wake of the British prime minister’s suggestion that the UK could request a two-month Brexit delay, Kempf told the Dutch newspaper Het Financieele Dagblad that he felt no relief at the apparent U-turn by Theresa May.